final exam BL

Currency Risk

is the risk that profits in the foreign host country's currency will not translate into equivalent profits in the investor's home country.

Nationalization

is the taking of an entire industry or a natural resource as part of a plan to restructure the nation's economic system.

Joint Venture

is when a U.S. citizen creates a new entity with a foreign country national.

Foreign Subsidiary

is when a U.S. corporation wants to open a subsidiary or separate corporate entity organized under the laws of the foreign host country.

Foreign Branch

is when a U.S. corporation wants to open up a branch or a division of the home country's corporation that is not considered a separate legal entity.

TRUE/antitrust

Antitrust laws originated in the U.S.

Purposes behind doing a foreign direct investment

- More Access to Natural Resources - More Access to Country's Workforce - Making Production More Efficient by Placing Production Closer to Supplies - Avoiding Trade Barriers

- Does the company posses monopoly power by having a majority market share? - Does having that majority market share cause a serious impact on the consumer's lives?

2 elements needed to prove an abuse of superior bargaining position in Japan's antimonopoly act

Sherman Antitrust act Antimonopoly act (japan)

An example of an act that would violate the antitrust law principle of prohibiting abuse of a dominant market position

proactive

Are the laws regarded mergers and acquisitions proactive or reactive in nature?

yes

Do you have to get permission from both countries' governments when business from two different countries want to merge

- possess monopoly power in a relevant marketgained - the power via improper conduct

Know the two elements needed to prove an abuse of monopoly power in the U.S.

FALSE/ terminate

Know whether European employers can terminate their employees without notifying the government first.

FALSE / sit on board

Know whether European workers are required to sit on the board of directors in European corporations.

FALSE/ german

Know whether a German business owner must consult with the government before closing down a factory.

FALSE/ U.S.

Know whether a U.S. business owner must consult with the government before closing down a factory.

TRUE/ Europe

Know whether severance pay is required in Europe.

TRUE / Chinese

Know whether the Chinese government is involved in the Chinese labor market.

FALSE/ WTO

Know whether there are any final agreements relating to environmental law in the World Trade Organization.

- What is the relevant market? - What is the effect of the merger on the market? - no more than 25%

What two elements are needed to prove an abuse of monopoly power according to the European Union's merger regulations

government

Which agency regulates monopolies in the U.S.

European Union's Treaty on the Functioning of the EU

a treaty where all members of the EU pledged to regulate anticompetitive actions and outlaw the abuse of dominant market power; this is the EU version of the Sherman Antitrust act, but is MORE STRICT

Chinese Labor Contract Law

an employer cannot terminate an employee for incompetence alone; if an employee is incompetent, the employer must re-assign the employee to another job OR provide further training before terminating employment

Sherman Antitrust Act

an example of an act that would violate the antitrust law principle of prohibiting agreements that restrict competition

Fluctuation Risk

is the possibility that the currency of the country in which the U.S. investor has put its money will devalue against the U.S. dollar.

Worldwide Tax Credit System

holds that any income earned anywhere in the world by a U.S. citizen will be taxed by the U.S. government.

ASEAN Agreement on the Conservation of Nature and Natural Resources

includes countries in South Asia and the South Pacific; the countries that are a part of this agreement agree to ensure that activities falling under their jurisdiction or control will not cause damage to the environment in other countries.

Foreign Direct Investment

is a class of investments in a foreign host country that involves an investing business carrying on some significant portion of its physical operations in that host country.

United Nations Convention to Combat Desertification

is a regional approach to addressing water scarcity and land and coastal degradation in the Middle East and African countries; this convention focuses on a Green Belt Movement.

Expropriation

is a taking of an isolated item of property by a foreign government.

Territorial Tax System

is an alternative to the Worldwide Tax Credit System used by the U.S.; some countries use a territorial tax system where only domestic source income is subject to taxation.

Hard Currency

is currency expected to serve as a reliable and stable source of value.

focused only on protecting consumers/buyers

purposes of antitrust law

New York Convention

which convection requires that an arbitration award ?

At-Will Employment,

which is an employment agreement of an indefinite duration; so the employee can quit at any time AND the employer can fire the employee for good reason, bad reason, or no reason at any time.

Shareholders

who have purchased an ownership stake in the business.